Universities play a crucial role in shaping local economies by driving employment, fostering business growth, attracting investment, and enhancing the overall quality of life in their host communities. Their economic impact extends beyond direct spending to include long-term benefits such as workforce development, innovation, and cultural enrichment. Below, we explore the key ways in which a university influences a local economy.
- Direct Employment and Spending
A university is often one of the largest employers in a local area, providing jobs for faculty, administrative staff, maintenance workers, and other professionals. These employees spend their salaries on housing, groceries, transportation, and entertainment, injecting money into the local economy. Additionally, universities spend significant amounts on construction, utilities, and local services, further stimulating business activity.
Students also contribute to local spending. Many bring outside money into the community through tuition payments, federal aid, and personal expenditures on rent, food, and retail. A large student population can sustain businesses such as bookstores, coffee shops, restaurants, and housing providers.
- Business Development and Entrepreneurship
Universities often serve as hubs for innovation and entrepreneurship. Research institutions, business incubators, and technology transfer offices help commercialize academic research, leading to startup formation and industry partnerships. For example, Stanford University's role in Silicon Valley's growth demonstrates how academic institutions can spur regional economic development.
Local businesses benefit from university partnerships, including procurement contracts for supplies, catering, and maintenance services. Furthermore, universities attract conferences, sporting events, and cultural activities that generate tourism revenue for hotels, restaurants, and transportation services.
- Human Capital and Workforce Development
A well-educated workforce is essential for economic competitiveness. Universities produce graduates with specialized skills that attract high-paying industries, such as technology, healthcare, and finance. Many graduates remain in the area, filling critical roles in local businesses and government.
Universities also offer continuing education programs, professional certifications, and workforce training initiatives that help upskill local employees, making the regional labor market more adaptable to industry changes.
- Real Estate and Infrastructure Growth
The presence of a university can drive demand for housing, both from students and faculty. This often leads to the development of new apartments, condominiums, and mixed-use commercial spaces. Over time, universities contribute to urban revitalization by investing in campus expansions, public transit improvements, and community amenities like libraries and parks.
However, rapid growth can also lead to challenges, such as rising housing costs and gentrification, which may displace long-term residents. Local governments must balance economic expansion with policies that ensure affordable housing and equitable development.
- Cultural and Social Contributions
Beyond economics, universities enrich local culture through arts programs, public lectures, and athletic events. These activities improve residents' quality of life, making the area more attractive to businesses and skilled workers. A vibrant university town often sees increased property values and a more diverse, engaged community.
Conclusion
The economic impact of a university on a local economy is multifaceted, encompassing job creation, business growth, talent development, and infrastructure investment. While challenges such as affordability and displacement must be managed, the long-term benefits-including innovation, increased tax revenues, and a more dynamic workforce-make universities vital engines of regional prosperity. By fostering collaboration between academia, government, and industry, communities can maximize these advantages while ensuring inclusive growth.
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Samaritan Hospital School of Nursing |
Davis College |
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Bennington College |
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North Country Community College |
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Russell Sage College |
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SUNY Adirondack |
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Skidmore College |
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Middlebury College |
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Rensselaer Polytechnic Institute |
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Hudson Valley Community College |
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Empire State University |
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Percent admitted - total Admissions yield - total
Full-time enrollment Part-time enrollment
Total enrollment % White % Black % Asian % Hispanic % Native Hawaiian or Other Pacific Islander % American Indian or Alaska Native % two or more races % Race/ethnicity unknown % U.S. Nonresident
Undergraduate enrollment % under 18 % 18-24 % 25-64 % over 65
Graduate enrollment
Student-to-faculty ratio
Tuition and fees, 2020-21 2021-22 2022-23 2023-24
Total price for In-district students living on campus 2023-24 In-state students living on campus 2023-24 Out-of-state students living on campus 2023-24
In-district students living off campus (no family) 2023-24 In-state students living off campus (no family) 2023-24 Out-of-state students living off campus (no family) 2023-24
In-district students living off campus (w/ family) 2023-24 In-state students living off campus (w/ family) 2023-24 Out-of-state students living off campus (w/ family) 2023-24
Associate's degree Bachelor's degree Master's degree Doctor's degree - research/scholarship Doctor's degree - professional practice Doctor's degree - other
Instructional FTE Research FTE Public Service FTE Librarians, Curators, and Archivists FTE Student/Academic Affairs and Other Education Services FTE Management FTE Business and Financial Operations FTE Computer, Engineering, and Science FTE Community Service, Legal, Arts, and Media FTE Healthcare FTE Service FTE Sales and Related FTE Office and Administrative Support FTE Natural Resources, Construction, and Maintenance FTE Production, Transportation, and Material Moving FTE Total FTE staff
|
NA
NA
3,662
5,883
9,545
51
14
3
14
0
0
3
14
0
7,789
1
26
73
1
1,756
17
7,630
7,630
7,630
7,630
NA
NA
NA
26,208
26,208
36,118
10,748
10,748
20,658
430
1,716
399
0
0
0
325
1
0
0
45
38
101
29
1
50
7
0
177
4
3
781 |
NA
NA
4,675
4,768
9,443
65
13
8
8
0
0
4
2
0
9,443
28
53
20
0
0
17
5,964
5,964
6,018
6,694
NA
NA
NA
29,164
29,164
34,220
13,504
13,504
18,560
1,301
NA
NA
NA
NA
NA
286
0
0
2
10
23
23
24
23
11
93
8
177
3
7
690 |
58
16
6,922
102
7,024
42
5
19
11
0
0
5
4
14
5,954
3
97
1
0
1,070
14
57,012
58,526
60,074
61,884
82,404
82,404
82,404
82,404
82,404
82,404
74,944
74,944
74,944
0
1,379
347
146
0
0
478
128
0
19
131
144
139
116
92
33
163
1
133
81
2
1,660 |
10
45
2,783
74
2,857
55
5
8
11
0
0
7
1
12
2,800
1
99
0
0
57
9
58,316
59,770
62,460
65,280
85,880
85,880
85,880
80,060
80,060
80,060
67,280
67,280
67,280
0
611
201
4
0
0
364
2
1
25
40
114
92
54
81
25
196
0
124
47
12
1,177 |
23
26
2,739
37
2,776
64
4
6
10
0
0
6
2
9
2,776
1
98
1
0
0
8
58,278
60,302
62,398
65,030
85,270
85,270
85,270
NA
NA
NA
74,896
74,896
74,896
0
617
0
0
0
0
334
3
0
18
31
57
56
40
91
10
179
0
112
35
5
971 |
NA
NA
1,339
1,384
2,723
83
5
1
5
0
0
3
2
0
2,723
27
55
17
0
0
15
5,832
5,784
6,088
6,528
24,242
24,242
26,906
21,828
21,828
24,492
11,328
11,328
13,992
434
NA
NA
NA
NA
NA
104
0
0
2
25
34
40
6
11
0
33
6
37
0
0
298 |
76
15
1,437
627
2,064
62
12
5
11
0
1
3
7
0
1,080
3
87
10
0
984
10
32,950
33,894
35,351
36,756
54,322
54,322
54,322
56,442
56,442
56,442
41,281
41,281
41,281
0
277
292
35
45
0
116
0
0
6
29
46
10
17
18
6
30
0
37
8
1
324 |
NA
NA
640
975
1,615
79
3
2
1
0
4
0
9
0
1,615
52
26
22
0
0
12
6,562
6,562
6,562
6,562
20,358
20,358
27,530
20,358
20,358
27,530
11,562
11,562
18,734
153
NA
NA
NA
NA
NA
42
0
0
1
0
14
1
4
5
0
10
0
18
4
0
99 |
48
16
819
48
867
63
3
2
10
0
0
5
4
12
776
2
92
6
0
91
9
58,124
59,638
61,448
64,644
87,284
87,284
87,284
87,284
87,284
87,284
68,644
68,644
68,644
9
151
60
0
0
0
84
0
0
5
15
40
11
6
34
0
44
0
40
9
1
289 |
33
100
55
82
137
59
7
1
9
0
0
5
18
0
137
36
47
17
1
0
6
17,150
17,150
17,200
17,500
27,500
27,500
27,500
27,280
27,280
27,280
22,380
22,380
22,380
2
21
0
0
0
0
11
0
0
0
2
2
1
0
0
0
0
0
1
0
0
17 |
NA
NA
11
121
132
61
17
6
8
0
2
1
5
0
132
0
34
66
0
0
6
14,292
14,292
14,292
14,671
NA
NA
NA
36,461
36,461
36,461
22,561
22,561
22,561
53
NA
NA
NA
NA
NA
12
0
0
0
1
2
1
0
0
0
0
0
1
0
0
17 |
Sources: STI: PopStats and STI: Colossus
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